California Governor Brown Admits: “We have lived beyond our means”

I came across nice example, albeit on the state level, of what I outlined a little while ago regarding which party would shrink and which party would expand government spending:

The government will not grow or shrink or exist because you voted for it. You voted because there is a government. The government will not grow and wage wars or shrink and get out of wars because you ask it to. The government grows as long as it can borrow from people and tax you. It will shrink once the interest payments on its debt eat up everything else it can still afford and people are too broke to get taxed. And luckily, what I’m saying here is testable. Observe events moving forward and watch what happens. I would gladly stand corrected if objective evidence proves me wrong! :)

One could arguably say that Governnor Brown got lots of support from Californian public sector and labor unions, and other Democrats who are usually not particularly keen on cutting benefits and welfare programs.

Over 3 years ago, back then under Republican Governor Schwarzenegger, I wrote:

California has to wake up to reality. Whether we like it or not, the state needs to stop paying unionized workers outrageous wages. Instead of reducing expenses for some departments and programs, it needs to dismantle and abolish entire departments and programs. It needs to stop funding unsustainable pension plans. In return it needs to drastically cut the overwhelming taxes and fees that are stifling its economy.

Now look what Brown said the other day (emphasis mine):

California Governor Jerry Brown and lawmakers have reached a deal to raise public employees’ retirement ages, have them pay more into their pension accounts, and cap retirement payments in a vast overhaul of the state’s pension system that he says will save $30 billion.

California faces a huge liability for funding the nation’s largest public pension system, but other states and cities also have enormous pension funding gaps and will be watching the state closely.

Brown did not get everything he wanted from lawmakers, such as a hybrid plan that would funnel some contributions into 401(k)-style accounts, and some of the deal’s measures will not affect current employees.

“We have lived beyond our means,” he said. “The chickens are coming home to roost and this is just one in a series of countermeasures that will be required over the next decade.

True that, Jerry. Glad you’re catching on to the obvious. Expect much more severe yet necessary cuts in the years to come on the state level, and at some not too distant point in the future on the federal level as well.

Related Posts:

Governor Brown Launches Effort to Raise Califnornians’ Taxes

After a lot of talk about change, governor Brown of California prepares Californians for tax hikes:

California Governor Jerry Brown said he’s willing to gather signatures for a voter initiative to extend $11 billion in expiring tax increases, blocked by Republican lawmakers, in order to balance the state’s budget.

Brown, speaking in Los Angeles yesterday, said he may bypass the Legislature and go through the ballot measure process to put the issue to a statewide vote, though he’d prefer that lawmakers act.

“We are going to put it before the people one way or another,” the 73-year-old Democrat said in an interview. When asked if it might be placed on the ballot as soon as November, he nodded.

As always, the solutions that politicians have to shortfalls and deficits at some point are tax hikes. California is already one of the most taxed and regulated state in the US.

Brown got huge support from teachers’ unions and other unions in general during the election. Here’s the inevitable payback:

Unions such as the California Federation of Teachers have indicated they may gather signatures to put a measure on a statewide ballot seeking higher taxes on the wealthy.

Brown got a standing ovation yesterday at the California State Parent Teacher Association’s convention in Long Beach when he said he would not support reduced spending on schools.
‘You’ve Got a Friend’

“I want you to know you’ve got a friend, an ally and a partner as we go forward together,” he said.

Leaving the podium, he held up a sign he was handed that read, “Cuts Hurt Kids.”

Like I said before, I applaud unions across the nation to do everything they can to turn off this young generation and self-destruct over the long run.

Related Posts: